Answer to Question #269411 in Economics for Muhammad Ali

Question

Should multinational corporations be encouraged to invest in low- and middle-income countries,

such as through investment promotion programs, and if so, under what conditions?

Answer 1

MNCs are believed to be highly beneficial for developing countries in terms of bringing employment opportunities and new technologies that spillover to domestic firms. Furthermore, MNCs often benefit from government subsidies, which could in future be linked to investment in local firms.